BioReliance Announces Achieved and Anticipated Cost Synergies Following Acquisition of Q-One Biotech
09 December 2003 - 8:05AM
PR Newswire (US)
BioReliance Announces Achieved and Anticipated Cost Synergies
Following Acquisition of Q-One Biotech ROCKVILLE, Md., Dec. 8
/PRNewswire-FirstCall/ -- BioReliance Corporation announced today
that, following its recent acquisition of Q-One Biotech Group Ltd.,
the Company expects to achieve annualized cost synergies in the
combination of approximately $4.5 to $5.5 million, before the
effect of income taxes, by the end of the first quarter of 2004. In
addition to these cost structure improvements, BioReliance
management expects the acquisition to create significant
opportunities for revenue growth. BioReliance's acquisition of
Q-One Biotech was announced in August 2003 and the transaction was
completed on September 23, 2003. For the nine months ended
September 30, 2003, on a combined basis, BioReliance and Q-One had
revenues of $83.9 million and assets of $177.5 million. BioReliance
disclosed pro forma combined historical financial information for
the companies in a report filed today with the Securities and
Exchange Commission. Based on achieving the planned cost synergies,
BioReliance management expects the transaction to be accretive to
earnings per share in the fourth quarter of 2003 and substantially
more accretive during 2004, the first full year of combined
operations. These anticipated cost savings are expected to result
from reduced compensation expense associated with Q-One stock
option grants, efficiencies in administration, efficiencies in
sales and marketing, standardization of processes, elimination of
redundant facilities and other savings opportunities. Overall, the
planned reorganization is part of creating a more capable and
global service enterprise, implementing a post-acquisition strategy
of serving BioReliance's international client base with integrated,
worldwide service offerings and support. This globalization builds
upon new and enhanced capabilities for serving biotechnology and
pharmaceutical customers. BioReliance now provides extended
resources and know-how to serve the needs of its clients. The
Company has increased its range of services with the continued
availability of Q-One assays. It enjoys considerably greater
capacities for scheduling client work, enhancing timeliness while
maintaining quality. Both custom and standard services continue to
be offered, and clients can better source required services in the
most cost effective manner possible. The combination with Q- One
also has enhanced multi-site backup capabilities for many services.
BioReliance previously announced the launch of a global Sales and
Marketing organization, with which the Company is now offering
biologics testing and manufacturing services on a comprehensive
basis to clients around the world. About BioReliance BioReliance
Corporation is a leading contract service organization providing
testing, development and manufacturing services for biologics and
other biomedical products to biotechnology and pharmaceutical
companies worldwide. The Company believes that it is the largest
provider of outsourcing services focused on the expanding biologics
sector of the pharmaceutical industry. Forward-Looking Statements
Certain statements made in this release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate, or
imply future results, performance, or achievements, and may contain
the words "believe," "anticipate," "confident," "expect,"
"estimate," "project," "will be," "will continue," "will likely
result," or similar words or phrases. Comments such as those with
respect to the likelihood, timing and magnitude of expected cost
savings and other synergies or the opportunities for revenue growth
resulting from BioReliance's acquisition of Q-One Biotech
constitute forward-looking statements. As and when made, management
believes that these forward-looking statements are reasonable.
BioReliance undertakes no obligation to revise or publicly release
the results of any revision to these forward-looking statements.
Forward- looking statements involve risks and uncertainties, which
may cause actual results to differ materially from the
forward-looking statements. Risks and uncertainties are detailed
from time to time in reports filed by BioReliance with the
Securities and Exchange Commission, including in its Forms 10-K and
10-Q. Given these risks and uncertainties, investors should not
place undue reliance on forward-looking statements as a prediction
of actual results. DATASOURCE: BioReliance Corporation CONTACT:
John L. Coker, Senior Vice President, Finance and Administration
and Chief Financial Officer of BioReliance Corporation,
+1-301-762-5260; or General Info., Marilynn Meek, +1-212-445-8451,
or Analysts, Julie Tu, +1-212-445-8456, both of Financial Relations
Board
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